It has been almost 18 months for the trade disputes between the world’s biggest economies.
The US and China both agreed on a “Phase One” trade deal after the long negotiations.US and China both have an agenda to reduce some of the tariffs on
Chinese goods.US reduced tariff on USD 120 billion to 7.5% from 15%.
However, China has to buy more US farm products and tighten protection for intellectual property rights.
China agreed to purchase a USD 40 Billion to USD 50 Billion agriculture product over two years.
This deal also includes intellectual property protection such as legal protections for patents, trademarks, copyrights.
The currency agreement also included in phase one that the deal contains pledges by China to refrain from competitive currency devaluations and do not target its exchange rate for
As this trade deal agreement was signed off, the Asian stock markets were boosted by trade talk optimism.
Asian stock market saw a mixed performance, with indexes that have usually been most sensitive to trade issues, Asian markets were finished broadly higher with shares in China leading
This deal will reduce market uncertainty, boost confidence and promote trade and economic development in the Chinese economy and the Asian market as well.
The market got a big confidence boost after the United States and China reached a long-awaited “phase one” trade deal.
Thus the trade agreement removed some of the uncertainty for businesses and investors.